Fitch Ratings on Dec. 18 downgraded Colombia-based Coltefinanciera SA Compañía de Financiamiento's long-term national rating to A-(col) from A+(col) and its short-term national rating to F2(col) from F1(col).
The decline in the ratings reflects Coltefinanciera's weaker credit profile, after the impairment in its portfolio quality and the recording of operating losses. These reduced the company's size by more than 20% and its portfolio by 38% in the last two years, Fitch said.
Although Coltefinanciera took necessary measures to contain the crisis, Fitch does not expect the company's metrics to normalize in the medium term.
"The actions taken by the entity together with the commitment shown by the shareholder in supporting the operation were relevant factors to contain the deterioration in the credit quality of the entity, but the resulting financial and business profile is rather consistent with the new level of rating," Fitch said. However, the rating agency noted that a material recovery of the credit profile could occur in the medium term.